Page 208 - CA Final Audit Titanium Full Book. (With Cover Pages)

CA Ravi Taori
Consideration of Previous Audit Limitations: The auditor assesses whether a limitation on scope from the
latest annual financial audit still exists and considers the implications for the review report.
Going Concern and Material Uncertainties
Material Uncertainty: If a material uncertainty arises that casts significant doubt on the entity’s ability to
continue as a going concern, and adequate disclosure is made, the auditor modifies the review report by adding
an emphasis of matter paragraph.
Material Uncertainty from Prior Period: If such material uncertainty was highlighted in a prior report and
still exists with adequate disclosure, the auditor modifies the current interim financial information report to
emphasize the continued uncertainty.
Inadequate Disclosure of Material Uncertainty: If the material uncertainty is not adequately disclosed, the
auditor should express a qualified or adverse conclusion and include a specific reference to the existence of such
a material uncertainty.
Other Considerations
Issuance Without Review Report: The terms of engagement require that if any document with interim
financial information indicates a review by the auditor, the review report must also be included. If omitted, the
auditor considers seeking legal advice for the appropriate course of action.
Issuance Without Modified Review Report: If a modified review report is issued and the interim financial
information is released without it, the auditor considers legal advice and possibly resigning from the annual
financial statement audit appointment.
Condensed Set of Financial Statements: Interim financial information may be condensed and not as
comprehensive as full financial statements, focusing on significant events and changes since the annual reporting
date, assuming users have access to the latest audited financial statements.
To be read in conjunction: In certain cases, the auditor discusses with management the need for interim
financial information to be read in conjunction with the latest audited financial statements. Absence of such a
statement may lead the auditor to consider the information misleading and assess the implications for the review
report.
Documentation
Evidence for Report: The auditor should prepare documentation that is sufficient and appropriate to provide a
basis for the auditor’s conclusion.
Compliance with SRE and Legal Requirements: The documentation should provide evidence that the review
was performed in accordance with this SRE and applicable legal and regulatory requirements.

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